Please help - Depreciation

Others 1156 views 17 replies

HI to all

A  Firm's constitution has been changed w.e.f 01/01/2010 from Proprietorship to Partnership

Two Balansheet has to made -> Proprietorship 01-04-09 to 31-12-09 & Partnership 01-01-10 to 31-03-10

my question at what ratio ...depreciation will be claimed in both balance sheet

 

please help

 

regards

Deepak

Replies (17)

I think Ratio Should be Calcuated Day Wise or Month Wise ie.9:3 Ratio 

ya,even i opine day wise...

as per income tax act Ratio Should be Calcuated on Day Basis.

thnkx ganga

HMM me also think the same that the annual amount of depreciation should be claimed as 75:25 %

but i need , sured answer........

thnkx ganga

HMM me also think the same that the annual amount of depreciation should be claimed as 75:25 %

but i need , sured answer........

thankyou allllllll :)

Thanks Ritu !!!!!!!!

Ratio Should Be Based On Time Period i.e 9:3...

simple 1/4 to 31/12 & 1/1 to 31/3.

9:3.

Agree with above .. ratio should be 9:3

It is calculated on day wise...

For the purpose of preparation of books of accounts, we have to calculate the depreciation on the basis of number of days.

Again, In  income tax Act, for the purpose of claiming deduction of depreciation while calculating business income, we need to calculate depreciation on number of days basis. (See 5th proviso of section 32 of Income tax Act).

I think, the word succession has confused to all.

In terms of Section 45(3) , it is a transfer.

Whenever the transfer takes place, the transferer prop. firm will not get any benefit as per the depreciation provisions.

We know that when an asset is sold, in the year of its transfer, depreciation can not be claimed on such  transferred asset.

So, here my view goes against all the participants and hope every one will agree with me.

Proprietary concern will not claim any depreciation on the assets which are being transferred to the new partnership firm.

It has to do the exercise of calculation of capital gains on the capital asset which are being transferred  into the Partnership Firm as capital contribution or otherwise.

The firm shall claim depreciation.

Since the assets have been utilised for less than 180 days, Dep. Will be allowed  @ 50% of the normal rate.

Originally posted by : Paras Bafna

I think, the word succession has confused to all.

In terms of Section 45(3) , it is a transfer.

Whenever the transfer takes place, the transferer prop. firm will not get any benefit as per the depreciation provisions.

We know that when an asset is sold, in the year of its transfer, depreciation can not be claimed on such  transferred asset.

So, here my view goes against all the participants and hope every one will agree with me.

Proprietary concern will not claim any depreciation on the assets which are being transferred to the new partnership firm.


It has to do the exercise of calculation of capital gains on the capital asset which are being transferred  into the Partnership Firm as capital contribution or otherwise.

The firm shall claim depreciation.

Since the assets have been utilised for less than 180 days, Dep. Will be allowed  @ 50% of the normal rate.

agreed with paras bafna sir..........thanx 4 explaining wonderfully


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register